As business consultants who have weathered many turbulent times in the past, we’d like to offer what we think is perhaps, the most important financial advice a business owner should adhere to during this Corona Virus crisis.
CASH is always KING, so hoard it as best as you can! Here’s how:
- KNOW how much CASH you have in the bank every day.
- KNOW (or at least estimate) how much cash is coming in this week.
- DETERMINE – how many weeks (or days) your cash will last without any new cash/collections coming in.
- DETERMINE – how many weeks (or days) can your business keep paying its bills WITHOUT any new sales?
- DETERMINE what expenses you can cut or delay Today? Tomorrow? Next week?
- STAY in touch with all your suppliers, and make sure to pay your most important suppliers some of what you owe them. Tell them when you will pay the rest of what you owe them. Talk to them if you must miss a payment.
- ASK for temporary relief from your landlord, credit card companies, and your bank regarding any credit lines or term loans you may have.
- TAKE advantage of any local, state, federal loan, SBA or grant programs as soon as possible.
- APPLY if you qualify: https://disasterloan.sba.gov/ela/
- THINK out of the box for raising money such as GoFundMe, Indiegogo, etc.
- EXPECT this environment to continue for at least the next 60, 90, 180 days – have a plan to handle best and worst-case scenarios.
- HAVE a plan in place for furloughing or laying off (temporarily) non-essential employees if your county/town/city goes into a “Shelter in Place” (virtually a lockdown) situation. Confer with an Employment Lawyer specialist, your PEO, your paycheck company before you take any action, so you are compliant with all local, state, and federal law.
- KEEP communicating with everyone – Have daily conference calls with your employees, your advisors, your spouse, friends, network partners etc. You may have to self-quarantine, but that does not mean you should isolate yourself.
Matt Plociak and Michael Gansl, the Voices of Reason, are available to listen to your issues and be of assistance in any way they can. We are on Zoom, Skype, Microsoft Teams, and cell phones. You can reach them at: